Select Medical (NYSE:SEM) Updates FY 2026 Earnings Guidance

Select Medical (NYSE:SEM) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 1.220-1.320 for the period, compared to the consensus estimate of 1.260. The company issued revenue guidance of $5.6 billion-$5.8 billion, compared to the consensus revenue estimate of $5.7 billion.

Analyst Ratings Changes

A number of analysts have recently commented on the company. Weiss Ratings raised Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, February 20th. Zacks Research lowered Select Medical from a “hold” rating to a “strong sell” rating in a research note on Thursday, February 26th. Benchmark lowered Select Medical from a “buy” rating to a “hold” rating in a research note on Wednesday, March 4th. Wall Street Zen lowered Select Medical from a “buy” rating to a “hold” rating in a research note on Monday, March 9th. Finally, Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $16.50 price objective (down from $19.00) on shares of Select Medical in a research note on Tuesday, March 3rd. One investment analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $15.63.

Select Medical Trading Up 0.3%

Shares of Select Medical stock traded up $0.05 during midday trading on Friday, reaching $16.46. The company had a trading volume of 1,658,249 shares, compared to its average volume of 1,796,131. The stock has a fifty day moving average price of $16.13 and a 200 day moving average price of $15.22. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.04 and a quick ratio of 1.04. The firm has a market cap of $2.04 billion, a PE ratio of 14.31, a P/E/G ratio of 0.95 and a beta of 1.12. Select Medical has a fifty-two week low of $11.65 and a fifty-two week high of $16.99.

Select Medical (NYSE:SEM) last posted its quarterly earnings data on Thursday, April 30th. The health services provider reported $0.36 EPS for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.07). Select Medical had a return on equity of 7.26% and a net margin of 2.68%.The company had revenue of $1.42 billion during the quarter, compared to analyst estimates of $1.41 billion. During the same period in the prior year, the firm earned $0.44 earnings per share. Select Medical’s revenue was up 5.0% compared to the same quarter last year. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. On average, equities analysts anticipate that Select Medical will post 1.27 earnings per share for the current year.

Select Medical Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, May 28th. Investors of record on Thursday, May 14th will be given a dividend of $0.0625 per share. This represents a $0.25 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date is Thursday, May 14th. Select Medical’s payout ratio is presently 21.74%.

Select Medical announced that its board has authorized a stock repurchase plan on Thursday, February 19th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the health services provider to purchase up to 49.5% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

Key Stories Impacting Select Medical

Here are the key news stories impacting Select Medical this week:

• Positive Sentiment: Take‑private transaction remains a near‑term catalyst (potential premium to public price) even as details and timing are debated. SEM Q1 deep dive: Margin pressures and take-private deal shape outlook
• Positive Sentiment: Board declared a quarterly cash dividend ($0.0625 per share; ex‑dividend May 14), which supports income investors and can buoy demand into the record date. Select Medical Announces Results and Cash Dividend
• Positive Sentiment: Revenue edged above expectations (Q1 revenue $1.42B, ~5% YoY growth), showing demand resilience across the business. Select Medical’s Q1 CY2026: Beats On Revenue
• Neutral Sentiment: FY‑2026 guidance was provided (EPS $1.22–1.32; revenue ~$5.6–5.8B), roughly in line with consensus — limits downside from a guidance shock but leaves little upside absent margin improvement. Select Medical Q1 Press Release and Guidance
• Negative Sentiment: Q1 EPS missed expectations ($0.36 vs. $0.43 est.), driven by margin pressure; net margin and ROE remain modest, which raises near‑term profitability concerns. Select Medical Lags Q1 Earnings Estimates
• Negative Sentiment: Two shareholder‑law‑firm probes allege potential board fiduciary breaches related to the proposed take‑private deal, adding legal and execution risk to the transaction and potentially delaying or complicating a sale. Johnson Fistel Investigates Potential Board Fiduciary Duty Breaches

Institutional Investors Weigh In On Select Medical

Several hedge funds and other institutional investors have recently modified their holdings of SEM. Smartleaf Asset Management LLC lifted its position in Select Medical by 37.8% in the fourth quarter. Smartleaf Asset Management LLC now owns 2,870 shares of the health services provider’s stock valued at $43,000 after purchasing an additional 788 shares during the last quarter. Wilmington Savings Fund Society FSB grew its holdings in shares of Select Medical by 20.9% in the third quarter. Wilmington Savings Fund Society FSB now owns 5,784 shares of the health services provider’s stock worth $74,000 after purchasing an additional 999 shares during the last quarter. California State Teachers Retirement System grew its holdings in shares of Select Medical by 1.4% in the second quarter. California State Teachers Retirement System now owns 102,230 shares of the health services provider’s stock worth $1,552,000 after purchasing an additional 1,418 shares during the last quarter. Quarry LP bought a new stake in Select Medical during the 4th quarter valued at $26,000. Finally, Caitong International Asset Management Co. Ltd bought a new stake in Select Medical during the 4th quarter valued at $28,000. Institutional investors own 89.48% of the company’s stock.

About Select Medical

Select Medical is a leading provider of specialized healthcare services in the United States, operating through two primary business segments: Hospital Division and Outpatient Rehabilitation Division. The Hospital Division offers long-term acute care (LTAC) hospitals and inpatient rehabilitation facilities (IRFs) that serve patients recovering from complex illnesses, trauma or surgery. The Outpatient Rehabilitation Division delivers physical, occupational and speech therapy services through a network of clinic locations and home-based care programs.

Headquartered in Mechanicsburg, Pennsylvania, Select Medical was founded in 1996 and has grown through strategic partnerships, joint ventures and acquisitions.